In the approaching fiscal year, many workers might not find themselves with a fatter paycheck due to a salary increase, but there’s a silver lining in the tax realm.
The Internal Revenue Service (IRS) has revamped income tax brackets for 2024, paving the way for potential savings
Dodson emphasizes that individuals will witness a reduction in their tax burden for 2024 compared to the previous year. The IRS routinely adjusts tax brackets to counter inflation, and for the upcoming tax year, the adjustment stands at 5.4%. The significance of this adjustment becomes apparent when examining specific tax brackets. For instance, the 22% tax bracket for married couples filing jointly sees an increase in income range from $89,450-$190,750 in 2023 to $94,300-$201,050 in 2024.
Dodson and experts recommend not adjusting withholding unless major life events occur, like having a child, sending one to college, receiving a large bonus, or undergoing a marital status change
To gain a thorough understanding of the income tax brackets applicable in 2024, the IRS website offers in-depth details. It’s noteworthy that the highest tax rate remains 37%, affecting single taxpayers with earnings surpassing $609,350 and married couples filing jointly whose incomes exceed $731,200. As individuals get ready for the upcoming tax year, these modifications emphasize the significance of staying updated on the changing landscape of income tax brackets.
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